In making a decision about whether to increase its advertising budget the firm management should not consider
A)the added revenue from increased sales.
B)the added cost of producing more goods for sale.
C)interest payments on the firm's loan.
D)the cost of the increased advertising.
E)none of the above

Question

Quizplus · Accepted Answer

Interest payments on the firm's loan are not directly related to the decision to increase the advertising budget. The decision should be based on the potential added revenue from increased sales and the cost of the increased advertising, as well as any additional costs associated with producing more goods for sale.

In Making a Decision About Whether to Increase Its Advertising